{"id":497,"date":"2020-04-24T21:45:29","date_gmt":"2020-04-24T21:45:29","guid":{"rendered":"https:\/\/tt-blogs.dealerfire.com\/dealerfirecom\/?p=497"},"modified":"2023-12-06T16:40:49","modified_gmt":"2023-12-06T16:40:49","slug":"data-showing-positive-signs-for-automotive-during-covid-19","status":"publish","type":"post","link":"https:\/\/www.dealerfire.com\/blog\/data-showing-positive-signs-for-automotive-during-covid-19\/","title":{"rendered":"Data Showing Positive Signs for Automotive during COVID-19"},"content":{"rendered":"\n

Automotive is driving out of the tunnel and starting to see the light.  <\/p>\n\n\n\n

While vehicle sales are still significantly down overall for April to this point, the industry is seeing some positive points of light as sales are trending up from a dismal end of March. And while many consumers may not be all the way to purchase level yet, their online activity appears to be adjusting to the new normal. <\/p>\n\n\n\n\n\n\n\n

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Learn about our websites<\/a><\/div>\n\n\n\n
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Automotive Traffic Trends during COVID-19 for April<\/h3>\n\n\n\n

The place to start with the normalization of consumer behavior in automotive is with traffic\u00a0trends. Overall,\u00a0the past 10 days have seen\u00a0a 15-20\u00a0percent increase in organic\u00a0traffic\u00a0from the previous 10 days. This doesn\u2019t make up for all the losses\u00a0seen in late March and early April, but it is a clear\u00a0and consistent uptick across accounts.\u00a0<\/p>\n\n\n\n

The impact of the traffic bounce depends entirely on\u00a0the current state\u00a0status\u00a0and stay-at-home\u00a0orders, as\u00a0many stores in\u00a0states that remained largely open for business\u00a0saw a sharper overall rebound. Others that have been inundated with COVID-19 cases\u00a0early\u00a0such as California saw major declines\u00a0and are now starting to see increases again as\u00a0individuals get used to the new normal and\u00a0resume\u00a0typical\u00a0browsing behavior.\u00a0But,\u00a0these areas are generally not seeing anything close to pre-COVID numbers yet.\u00a0<\/p>\n\n\n\n

The trends can be seen on a granular level as you compare similar, large volume, same OEM dealers – one in a heavily affected area of California that was hit early and had major business restrictions, and the other in Texas, where state orders were issued much later and approach was much different for businesses.  <\/p>\n\n\n\n

In both cases, traffic has rebounded\u00a0in the past week. But in\u00a0Texas, the traffic\u00a0has already returned to very near pre-COVID numbers. Conversely, in California, traffic went down severely, and even though there is an increase now, it is\u00a0still down significantly from the norm.\u00a0\u00a0<\/p>\n\n\n\n

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April Leads and Sales Trends in the COVID Automotive World<\/h3>\n\n\n\n

Similar\u00a0to traffic, leads have been trending upward for dealers as well. And again, the\u00a0geo of the website plays into it. While leads across the board have picked up, the dealers in less affected areas where they remained entirely\u00a0open for business\u00a0are seeing\u00a0numbers\u00a0that are within striking distance, or equal, to the past.\u00a0Heavily affected areas\u00a0where businesses have online sales only\u00a0are seeing an uptick, but not to the level\u00a0that they were before.\u00a0<\/p>\n\n\n\n

There are 24 states\u00a0where dealership operations have been unaffected. In the other 26, only online or remote sales are allowed due to state guidelines.\u00a0In the beginning,\u00a0states like Pennsylvania and others banned all\u00a0vehicle\u00a0sales. This has since loosened, with everyone\u00a0now\u00a0having a shot at online sales at the very least.\u00a0<\/p>\n\n\n\n

No matter where a dealer is, the lead and ultimate sales volume\u00a0will still depend\u00a0heavily on how they are adopting to an online sales world. Offering delivery\u00a0options\u00a0and digital retailing tools is essential\u00a0to keep leads and sales flowing. At\u00a0DealerFire, we are offering 100 days free of our Delivery Test Drives<\/a> <\/strong>tool and discounts on the Precise Price digital retailing tool<\/strong><\/a>.\u00a0\u00a0<\/p>\n\n\n\n

But even when you adopt these methods, the reality is a large portion of the population is still not quite ready to buy yet. Incredible OEM discounts have certainly helped spark interest. General Motors, Ford and FCA are all offering 0% financing rates and deferred payment options for new purchases. Other OEMs are following suit with intriguing offers and incentives. And while that is a big reason that there was an overall 11% uptick in early April sales compared to the end of March, it still hasn\u2019t fully transferred for everyone.  <\/p>\n\n\n\n

There are caveats. One Indiana\u00a0dealer reported to us that\u00a0their March was better than last year. A Texas dealer is having one of its best Aprils ever in terms of sales and service.\u00a0Another independent group in Texas is seeing big gains in\u00a0both\u00a0year-over-year traffic and sales.\u00a0But overall,\u00a0while\u00a0dealerships are experiencing large decreases\u00a0in sales,\u00a0many are seeing positive signs for the future\u00a0in terms of traffic and leads.\u00a0<\/p>\n\n\n\n

COVID recovery in some areas, easy online ways to buy and OEM incentives have all helped drive consumer interest. And the expectation is that May will continue the recovery trend \u2013 so it\u2019s really important to remain visible now to capitalize on the pent-up demand.  <\/p>\n\n\n\n

Service is Rolling \u2013 Stay the Course<\/h3>\n\n\n\n

A great way to remain relevant with consumers is to continue to promote fixed ops. With public transportation being less appealing,\u00a0essential workers who need to travel\u00a0are trusting their cars as the safest mode of transportation now. Therefore, service needs are still very strong.\u00a0<\/p>\n\n\n\n

\u00a0Providing safe options for service like deep cleaning and even pick-up and drop-off options for consumer vehicles is a winning service strategy. And as always,\u00a0getting consumers to interact with your dealership while the OEM is offering amazing financing options gives the dealership a better shot at getting a future sale.\u00a0\u00a0<\/p>\n\n\n\n

Stay Visible with your Marketing<\/h3>\n\n\n\n

Similar to before the rebound started to happen<\/strong><\/a>, it\u2019s vital to keep the dealership visible during this time. The\u00a0new normal is becoming a reality for most individuals, with the biggest initial jump being in website traffic. But given the mentioned pent-up purchase intent that is sure to burst, being at the top of mind with consumers is a huge opportunity.\u00a0\u00a0<\/p>\n\n\n\n

Continuing paid and organic strategies are obvious, but emerging platforms have more relevance than ever. A dealership\u2019s Google My Business\u00a0(GMB)\u00a0page is\u00a0a great way to get eyes on the brand, as it is a main landing spot for searchers and provides all the quick info they are looking for.\u00a0This includes basic information like if\u00a0a dealer is open, what the hours are during this time, and what offers are available.\u00a0<\/p>\n\n\n\n

To help through this time,\u00a0DealerFire\u00a0SEO customers are being offered GMB Basics<\/strong><\/a> for free right now to ensure their info is up to date and they are promoting offers on their Google My Business page.\u00a0\u00a0<\/p>\n\n\n\n

Literally thousands of consumers visit the Google My Business page a month, and up to 20% of them click through to the site from the page. Even if they don\u2019t click through, they can call, chat, or get directions to\u00a0the dealership through the GMB page. Having the page fully optimized means more people will find it with basic search terms,\u00a0creating\u00a0more interaction for the dealership and website.\u00a0<\/p>\n\n\n\n

And Google Posts allow dealers to have a very visible example of what they are doing in response to COVID-19 on the GMB page. This can include information on if the showroom is open,\u00a0delivery options, OEM incentives, and much more.\u00a0\u00a0<\/p>\n\n\n\n

What\u2019s in Store for May?<\/h3>\n\n\n\n

When looking at the data, all signs point to a continued recovery in May\u00a0\u2013 however, the growth comes with caution. No matter how good May turns out to be, it will not be near what could have been expected in a non-COVID world.\u00a0\u00a0<\/p>\n\n\n\n

As has been pointed out ad nauseam, it will largely depend on where a dealer is located. Some states are relaxing stay-at-home measures immediately, while others are extending through the end of May and potentially beyond. These measures and how consumers react to them will dictate a lot of the sales volume.\u00a0<\/p>\n\n\n\n

But no matter where the area is, the adaptation of new ways to sell and market to consumers will be the difference between dealers who weather the storm and those who truly struggle to get through. Any uptick is\u00a0extremely welcomed news for an industry based on moving units \u2013 especially with the summer sales season ahead.\u00a0\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Automotive is driving out of the tunnel and starting to see the light.   While vehicle sales are still significantly down overall for April to this point, the industry is seeing some positive points of light as sales are trending up from a dismal end of March. And while many consumers may not be all the way to purchase level yet, their online activity appears to be […]<\/p>\n","protected":false},"author":42,"featured_media":639,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[10],"tags":[],"yoast_head":"\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\n\n\t\n